Wednesday, 30 May 2012

Will european indices rise again or will they crash?

 DAX has bounced as expected towards 6450 but the resistance at those levels was too strong for the index to overcome. However I expect the index to resume the upward move soon. Initial resistance at the middle pitchfork is at 6400-6450. Breaking those levels will push the index much higher. Breaking 6250 would push long positions to liquidate and move the index towards  6100 support. DAX, as well as the other european indices, is much weaker than the american ones, but I see there is more chance as long as S&P holds, that europeans will turn up once more.
 CAC bounced as well from the middle pitchfork support and found resistance at the downward sloping trendline at 3100 level. Breaking this resistance is important for bulls to continue to have hopes for a move higher. 2950 where middle pitchfork support is now must hold for bulls to have chances. Breaking this line downwards would be a win for bears and a further push downwards will surely follow.
Eurostoxx moves similarly to CAC and DAX, but looks much weaker. Support at 2100 is important. Bulls want to keep that level and see the index break above 2200.I think european markets will turn upwards soon if S&P holds 1300-1295 level.

Thank you for taking the time to read this post, for more feel free to contact me.

No comments:

Post a Comment